“Social environment of business is important for a business enterprise”. Explain.
- A business is a part of the society in which it operates. The buying and consumption habits of the people, their languages, customs, tastes and preferences etc., are the factors that influence the business. Businessmen should be alert enough to visualize the factors that directly or indirectly affect their organization. The social environment consists of the sum total of a society’s beliefs, customs, practices and behaviors. It is, to a large extent, an artificial construct that can be contrasted with the natural environment in which we live. Cooperation between business and society will see business boom and will help growth of professional managers. The failure of any business organization in adapting to changes in the social environment will lead to dissatisfaction amongst its customers and rejection of its products. This shift of demand can even endanger the very survival of a business. For example, equal pay for male and female workers, demand for reservation in jobs for minorities and women etc.
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